Here is a Great Graphic we created on Bloomberg. It shows how the euro is moving above a year and a half old down trend line. This is what euro bulls are excited about.
The $1.3150 area contained the euro's rally in September and October and that corresponds to the 38.2% retracement of the down move from May 2011.
Assuming the offers in this area are successfully absorb, the euro can move toward $1.35, which is essentially the high for 2012.